What is GSTR-4?

GSTR-4 is a GST return filed by taxpayers who have opted for the Composition Scheme under the Goods and Services Tax (GST) in India. Unlike regular taxpayers who file monthly returns, composition dealers file GSTR-4 annually. This return contains details of outward supplies, tax paid, and summary of inward supplies under reverse charge.

Who Should File GSTR-4?

Any taxpayer who has registered under the Composition Scheme must file GSTR-4. The scheme is available for small businesses with an annual turnover of up to ₹1.5 crores (₹75 lakhs for special category states). This scheme allows businesses to pay tax at a fixed percentage of their turnover, reducing compliance burdens.

Due Date of GSTR-4

• GSTR-4 is an annual return, and it must be filed by 30th April of the following financial year.
• For example, for FY 2023-24, the due date to file GSTR-4 is 30th April 2024.

Late Fees & Penalties for GSTR-4

If a composition taxpayer fails to file GSTR-4 on time, the following penalties apply:

• Late fee:₹50 a day (₹25 CGST + ₹25 SGST)

• Maximum late fee: ₹2,000 (₹1,000 CGST + ₹1,000 SGST)

• Nil return late fee: ₹500 (₹250 CGST + ₹250 SGST)

How to File GSTR-4?

Step-by-Step Guide to Filing GSTR-4 on the GST Portal

• Login to the GST Portal www.gst.gov.in

• Navigate to Services > Returns > Annual Return > GSTR-4

• Select the Financial Year and proceed

• Enter details of outward supplies, tax paid, and inward supplies under reverse charge

• Verify details and submit the return

• Make the payment (if applicable) and file using DSC/EVC

Key Points to Remember

• GSTR-4 is only for composition dealers

• It must be filed once a year

• TC is not available for composition dealers to claim ITC.

• They cannot make inter-state sales or export goods

• Reverse charge mechanism (RCM) transactions must be reported

Conclusion

All composition taxpayers must prepare and file GSTR-4 forms because it ensures their compliance with GST regulations. A business adopting the Composition Scheme must maintain awareness about deadlines, ensure proper reporting and file documents on schedule to prevent penalties and maintain operational efficiency.

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